I read Vegas's document on the 1hr tunnel, and only one thing is not clear for me. When setting up the Fibs for the 1hr method, Vegas says :
When a market hits a fib number from the current ema's, it is telling you that here is a natural stopping point, please take some profits off the table.
OK, cool, and when I look at the indicator for the 1hr method, the Fibs are based on the EMA 169 (for the fibs about and below the tunnel). My question is that the actual tunnel is based on two EMAs (144 and 169). Why was 169 chosen to base all the Fibs off of? Not saying it is wrong, I just want to be able to completely understand (if possible) what the Fibs above and below the tunnel should be based on. I assume it should be 144 or 169, but I am not clear.